‘No fine for municipalities if Gazprom contract is terminated’ | 1Limburg

If municipalities cancel their contract with the Russian gas company Gazprom, they should not expect a large fine or lump sum payment.

Different lawyers adjust this independently of each other BNR

Limburg municipalities
Except for the municipalities of Maasgouw and Beekdaelen, all Limburg municipalities have a contract with the gas giant, according to researchers from Follow the Money. Although Maastricht and Sittard-Geleen would still be working together with Gazprom in January 2020, according to the research, the municipalities informed L1 that they have now stopped doing so.

Terminate contract
The call from society to cancel the contract because of the war in Ukraine has become increasingly loud. Various questions are also asked in politics, such as in Venlo, Peel and MaasTruly-Susteren, KerkradeMeerssen and Valkenburg aan de Geul† The municipality mountains is looking into getting rid of the contract with Gazprom. The municipality of Peel en Maas also wants to terminate the contract as soon as possible.

Redemption not necessary
The Association of Dutch Municipalities (VNG) previously warned in the FD that municipalities must surrender the contracts if they want to cancel them. But that is not necessary, thinks lawyer Jan Hein Meerburg of Kennedy Van der Laan. According to Meerburg, there is an unforeseen circumstance that allows municipalities to dissolve the contract. “Municipalities have not been able to foresee that the party with which they concluded a contract will finance a war. That happens de facto. You do not have to tolerate a contracting party that suddenly acts so amorally.”

Also read: ‘Russian gas municipalities and water boards fill up war chest’

According to Follow the Money, many municipalities in the Netherlands would have chosen the giant because of the price, which is often lower than that of competitors such as the Dutch Greenchoice. The water boards, including the Limburg Water Board, also opted for Gazprom because it was by far the cheapest provider.

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